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<section article="gcl" article_name="Commercial Law" number="16-207" title_number="16" title_name="Statutory Liens on Personal Property" subtitle_number="2" subtitle_name="Lien on Aircraft, Boats, Mobile Homes, and Motor Vehicles">
  <level label="a">
    <text>If the charges which give rise to a lien are due and unpaid for 30 days and the lienor is in possession of the property subject to the lien, the lienor may sell the property to which the lien attaches at public sale. The sale shall be in a location convenient and accessible to the public and shall be held between the hours of 10 a.m. and 6 p.m.</text>
  </level>
  <level label="b">
    <level label="1">
      <text>The lienor shall publish notice of the time, place, and terms of the sale and a full description of the property to be sold once a week for the two weeks immediately preceding the sale in one or more newspapers of general circulation in the county where the sale is to be held.</text>
    </level>
    <level label="2">
      <text>In addition, the lienor shall send the notice by registered or certified mail at least 10 days before the sale to:</text>
      <level label="i">
        <text>The owner of the property, all holders of perfected security interests in the property and, in the case of a sale of a motor vehicle or mobile home, the Motor Vehicle Administration;</text>
      </level>
      <level label="ii">
        <text>The person who incurred the charges which give rise to the lien, if the address of the owner is unknown and cannot be ascertained by the exercise of reasonable diligence; or</text>
      </level>
      <level label="iii">
        <text>“General delivery” at the post office of the city or county where the business of the lienor is located, if the address of both the owner and the person who incurred the charges is unknown and cannot be ascertained by the exercise of reasonable diligence.</text>
      </level>
    </level>
  </level>
  <level label="c">
    <text>If a motor vehicle or mobile home which is subject to a lien is delivered by the lienor to the possession of a third party for storage, and the charges for storage are due and unpaid for 30 days or more, the third party holder is deemed to hold a perfected security interest in the motor vehicle or mobile home notwithstanding § 13–202 of the Transportation Article and may sell the motor vehicle or mobile home in the same manner as the lienor under this section if he has first published and sent notice as required of the lienor under this subtitle.</text>
  </level>
  <level label="d">
    <level label="1">
      <text>Except as provided in § 13–110 of the Transportation Article, the Motor Vehicle Administration shall issue a title, free and clear of any lien, to the purchaser of any motor vehicle or mobile home sold under this section, if the holder of the lien on the motor vehicle or mobile home submits to the Motor Vehicle Administration a completed application for a certificate of title with:</text>
      <level label="i">
        <text>A copy of the newspaper publication required by subsection (b) of this section;</text>
      </level>
      <level label="ii">
        <text>A copy of the registered or certified letter required under subsection (b) of this section to be sent to holders of perfected security interests in the motor vehicle or mobile home and the Motor Vehicle Administration, and the return card;</text>
      </level>
      <level label="iii">
        <text>A copy of the registered or certified letters required by subsection (b) of this section to be sent to the owner of the motor vehicle or mobile home, and the return card;</text>
      </level>
      <level label="iv">
        <text>If applicable, a written statement from the lienor that the lienor stored the vehicle in accordance with an agreement with an insurer;</text>
      </level>
      <level label="v">
        <text>An auctioneer’s receipt;</text>
      </level>
      <level label="vi">
        <text>If applicable, certification by holders of perfected security interests;</text>
      </level>
      <level label="vii">
        <text>In the case of mobile homes manufactured after 1976 and motor vehicles, a pencil tracing of the vehicle identification number or a statement certifying the vehicle identification number; and</text>
      </level>
      <level label="viii">
        <text>Any other reasonable information required in accordance with regulations adopted by the Administration.</text>
      </level>
    </level>
    <level label="2">
      <text>The Department of Natural Resources shall issue a title, free and clear of any liens, to the purchaser of any boat sold under this section.</text>
    </level>
  </level>
  <level label="e">
    <level label="1">
      <text>If the notice required under § 16–203(b) of this subtitle was sent, the proceeds of a sale under this section shall be applied, in the following order, to:</text>
      <level label="i">
        <text>The expenses of giving notice and holding the sale, including reasonable attorney’s fees;</text>
      </level>
      <level label="ii">
        <text>Subject to subsection (f) of this section, storage fees of the third party holder;</text>
      </level>
      <level label="iii">
        <text>The amount of the lien claimed exclusive of any storage fees except as provided in subsection (f)(2) of this section;</text>
      </level>
      <level label="iv">
        <text>A purchase money security interest; and</text>
      </level>
      <level label="v">
        <text>Any remaining secured parties of record who shall divide the remaining balance equally if there are insufficient funds to completely satisfy their respective interests, but not to exceed the amount of a security interest.</text>
      </level>
    </level>
    <level label="2">
      <text>Except as provided in paragraph (3) of this subsection, if the notice required under § 16–203(b) of this subtitle was not sent, the proceeds of a sale under this section shall be applied, in the following order, to:</text>
      <level label="i">
        <text>A purchase money security interest;</text>
      </level>
      <level label="ii">
        <text>All additional holders of perfected security interests in the property;</text>
      </level>
      <level label="iii">
        <text>The expenses of giving notice and holding the sale, including reasonable attorney’s fees;</text>
      </level>
      <level label="iv">
        <text>Subject to subsection (f) of this section, storage fees of the third party holder;</text>
      </level>
      <level label="v">
        <text>The amount of the lien claimed exclusive of any storage fees except as provided in subsection (f)(2) of this section; and</text>
      </level>
      <level label="vi">
        <text>Any remaining secured parties of record who shall divide the remaining balance equally if there are insufficient funds to completely satisfy their respective interest, but not to exceed the amount of a security interest.</text>
      </level>
    </level>
    <level label="3">
      <text>For a motor vehicle lien created under this subtitle, if the notice required under § 16–203(b) of this subtitle was not sent:</text>
      <level label="i">
        <text>The proceeds of a sale under this section shall be applied in the order described in paragraph (1) of this subsection; and</text>
      </level>
      <level label="ii">
        <text>The amount of the lien claimed in paragraph (1)(iii) of this subsection may not include any amount for storage charges incurred or imposed by the lienor.</text>
      </level>
    </level>
    <level label="4">
      <text>After application of the proceeds in accordance with paragraph (1) or (2) of this subsection, any remaining balance shall be paid to the owner of the property.</text>
    </level>
  </level>
  <level label="f">
    <level label="1">
      <text>If property is stored, storage fees of the third party holder may not exceed $5 per day or a total of $300.</text>
    </level>
    <level label="2">
      <text>The exclusion or limitation of any storage fees as provided in subsection (e)(1)(iii) of this section and paragraph (1) of this subsection does not apply to any person who conducts auctions as a business in this State, and is required to maintain records under § 15–113 of the Transportation Article, and that person is also exempt from the maximum storage fee limits under this subsection.</text>
    </level>
    <level label="3">
      <text>The notice requirements of § 16–203(b) of this subtitle do not apply when:</text>
      <level label="i">
        <text>The lienor conducts auctions as a business in this State and is required to maintain records under § 15–113 of the Transportation Article; and</text>
      </level>
      <level label="ii">
        <text>The lien arises out of that business.</text>
      </level>
    </level>
  </level>
</section>
